Reddit Inc. $RDDT Shares Sold by Voleon Capital Management LP

Key Points

• Voleon Capital Management LP reduced its stake in Reddit Inc. by 45.5% during the first quarter, now holding 42,949 shares valued at approximately $4.5 million.
• Reddit's stock recently increased 3.5% and has a market capitalization of $44.95 billion, with a price-to-earnings ratio of 218.35.
• Insiders sold a combined 516,777 shares of Reddit stock worth nearly $88.8 million in the last three months, representing a significant shift in ownership.

Voleon Capital Management LP decreased its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 45.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 42,949 shares of the company's stock after selling 35,846 shares during the quarter. Voleon Capital Management LP's holdings in Reddit were worth $4,505,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Signaturefd LLC grew its position in shares of Reddit by 3.5% during the 1st quarter. Signaturefd LLC now owns 2,859 shares of the company's stock worth $300,000 after buying an additional 97 shares in the last quarter. CWM LLC lifted its stake in shares of Reddit by 100.0% during the 1st quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after purchasing an additional 128 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Reddit by 12.5% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 1,323 shares of the company's stock worth $139,000 after purchasing an additional 147 shares during the last quarter. Morling Financial Advisors LLC lifted its stake in shares of Reddit by 3.8% during the 1st quarter. Morling Financial Advisors LLC now owns 5,487 shares of the company's stock worth $576,000 after purchasing an additional 202 shares during the last quarter. Finally, Wedbush Securities Inc. lifted its stake in shares of Reddit by 10.3% during the 1st quarter. Wedbush Securities Inc. now owns 2,487 shares of the company's stock worth $261,000 after purchasing an additional 233 shares during the last quarter.

Reddit Price Performance

Reddit stock traded up $18.84 during midday trading on Wednesday, reaching $259.04. The company's stock had a trading volume of 7,429,388 shares, compared to its average volume of 5,908,406. The stock's 50-day simple moving average is $192.30 and its 200-day simple moving average is $144.50. Reddit Inc. has a 52-week low of $55.84 and a 52-week high of $261.13. The stock has a market capitalization of $48.48 billion, a P/E ratio of 235.49, a PEG ratio of 3.81 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.45 EPS for the quarter, beating analysts' consensus estimates of $0.20 by $0.25. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The company had revenue of $499.63 million during the quarter, compared to analysts' expectations of $424.07 million. During the same period last year, the business posted ($0.06) earnings per share. The firm's revenue was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. As a group, equities research analysts expect that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

RDDT has been the subject of a number of analyst reports. JPMorgan Chase & Co. upped their price objective on Reddit from $145.00 to $190.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Raymond James Financial restated a "strong-buy" rating and set a $225.00 price objective (up from $175.00) on shares of Reddit in a research note on Friday, August 1st. Bank of America upped their price objective on Reddit from $130.00 to $150.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 30th. Roth Capital upped their price objective on Reddit from $130.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 21st. Finally, Needham & Company LLC upped their price objective on Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Reddit presently has an average rating of "Moderate Buy" and a consensus price target of $180.58.

Insider Activity

In related news, CAO Michelle Marie Reynolds sold 3,214 shares of Reddit stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $217.69, for a total transaction of $699,655.66. Following the completion of the transaction, the chief accounting officer directly owned 28,088 shares in the company, valued at approximately $6,114,476.72. This trade represents a 10.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Benjamin Seong Lee sold 6,426 shares of Reddit stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $220.28, for a total value of $1,415,519.28. Following the transaction, the insider owned 83,445 shares of the company's stock, valued at approximately $18,381,264.60. This represents a 7.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 516,777 shares of company stock valued at $88,790,076 over the last 90 days. Company insiders own 34.25% of the company's stock.

Reddit Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.